Council of State orders backdated revision of real estate tax valuations

The plenary session of the Council of State decided that the Greek government was obligated on May 21, 2015 to have restated objective property values.

Current objective property values do not correspond to actual market value of properties, due to the economic crisis.

The failure of the government to state new objective property values may lead to a retrospective adjustment of property values, thereby throwing off the taxation system of real estate, the single property tax (ENFIA) and the actual declared assets of taxpayers.

The Council of State annulled the failure of the government to issue a ministerial decision adjusting the objective values ​​of real estate, thus obligating the government to adopt the decision retrospectively with the starting date of May 21, 2015.

Thirteen property owners appealed to the Council of State asking for the annulment of the government’s refusal to issue every two years – as required by Law 1249/1982 – a decision adjusting objective property values.

The taxpayers on November 2013 had submitted to the Ministry of Finance a request for adjustment of objective property values, pursuant to Article 41 of Law 1249/1982. The ministry never answered their request and the taxpayers appealed to the Council of State.

The taxpayers argued that since property values plunged due to the economic crisis, the taxes do not correspond to the citizens’ taxpaying capacity. The last time real estate objective values were established was in 2007, while in some areas they were established in 2010.

The objective values on which taxpayers are expected to pay taxes on are far apart from the market values at the present time. This upsets the calculation of the single property tax (ENFIA).